> ## Documentation Index
> Fetch the complete documentation index at: https://help.smile.io/llms.txt
> Use this file to discover all available pages before exploring further.

# Creating cashback-style rewards in Smile

> Create a cashback-style experience by letting customers earn points on purchases that they can redeem for discounts.

You can create a cashback-style experience in Smile using points. Customers earn points based on their purchases and can redeem them for rewards later. Available reward types include dollar-off discounts, percentage-off discounts, and store credit, depending on your platform and plan.

## How cashback-style rewards work in Smile

Cashback-style rewards work by giving customers points for every purchase. Those points can then be redeemed for discounts, creating the feeling of earning money back.

Most merchants start with Smile's default points value of **100 points = \$1 discount**. You can adjust this ratio anytime in your program settings, but it's a simple, effective way to create a cashback-style experience.

With this setup, customers earn points for every dollar they spend. Those points can later be redeemed for discounts — for example:

* **5 points per \$1 spent** = about **5% back in points**
* **10 points per \$1 spent** = about **10% back in points**

Customers can then use their points to redeem:

* **A \$5 off discount** (dollar-off reward)
* **A 10% off discount** (percentage-off reward)
* **Store credit**

From a customer's perspective, this feels like cashback — they earn value with every purchase and redeem it later for savings. However, these rewards are discounts or store credit, not cash payouts.

## How to set up cashback-style rewards

Follow these steps in **Smile Admin** to create a cashback-style experience:

1. **Set your earning rule:** Decide how many points customers earn per dollar spent (for example, 5 points per \$1).
2. **Create reward options:** Create rewards that support a cashback experience, such as \$5 off, \$10 off, 10% off, or store credit.

To create discount rewards, follow ➡️ [Configure ways to redeem points](/en/articles/4036271-configure-ways-to-redeem-points)\
For store credit, follow  ➡️ [Configure store credit rewards](/en/articles/configure-store-credit-rewards)

Once your rewards are set up, customers will automatically earn points with every purchase and can redeem them for your chosen reward options.

## What customers experience

1. **Earn points:** Customers earn points automatically with each purchase.
2. **Track progress:** Their points balance grows in their Smile account. Customers can view their points balance in the [Smile panel or account page depending on your plan and setup](/en/articles/12589592-how-customers-see-their-points).
3. **Redeem rewards:** Customers can redeem points for the rewards available in the loyalty program, such as discounts or store credit.

**Apply the reward:** The reward is applied as a discount or store credit, depending on the reward type.

This setup gives customers the feeling of earning cashback while keeping rewards easy to manage within your store.

## How this differs from true cashback

Here's how Smile cashback-style rewards compare to traditional cashback:

| **Feature**             | **True cashback**                        | **Smile cashback-style rewards**                         |
| ----------------------- | ---------------------------------------- | -------------------------------------------------------- |
| **Payout type**         | Real money (credit or transfer)          | Points redeemed for a discount or store credit           |
| **Customer redemption** | Automatically credited to payment method | Redeemed manually by the customer                        |
| **Example**             | \$5 credited to bank account             | \$5 off or 10% off discount reward, or \$10 store credit |
| **Purpose**             | Direct cash incentive                    | Store loyalty and repeat engagement                      |

Smile's cashback-style rewards do not provide cash payouts. Instead, customers redeem points for rewards such as discounts or store credit. For eligible Shopify stores, store credit is applied directly to a customer's account and can be used at checkout, making it the closest equivalent to traditional cashback.

## Tips for effective cashback-style rewards

* **Use clear naming:** Label earning rules like "Earn 5% back in points" so the benefit is easy to understand.
* **Offer flexible rewards:** Include both dollar-off and percentage-off rewards for different spend levels.
* **Encourage redemption:** Remind customers to redeem their points regularly to stay engaged.